A Case Study of Dividend Policy and Corporate Governance of Listed Company in OTC in Taiwan

• Main Authors: Tai, Ting-Yu, 戴廷羽
• Other Authors: Chou, De-Wai
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/bvv327

碩士 === 國立臺灣師範大學 === 管理研究所 === 104 === In this case study, China Communications Media Group Co., Ltd. is the main object of the analysis. The study discusses CCMG’s dividend policy and focuses on the high stock dividend policy in 2014. First, by analyzing the three motivations of the company to pay stock dividends, it reveals that “Sending financial signal to shareholders that CCMG have confidence in the future operating performance" is most likely the reason CCMG distributed stock dividends to the shareholders. Next, the study examines the effects of the stock dividend policy to the company's operating performance and financial structure. The results show that stock dividend policy enables CCMG to have more adequate operating funds to implement the business plan and improves the financial structure. Finally, the study discusses the effects of the stock dividend policy on CCMG’s stock price and shareholders. The results show that CCMG underestimated the future competition in the market when it was establishing its dividend policy. In addition, the study also finds that after the issuance of stock dividends, there were two corporate directors who sold their shares. But we can only speculate that, "Turning the shares obtained from stock dividend policy into cash." is probably one of another possible motives CCMG issues stock dividend to the shareholders. However, the study suggests that both motives of "Sending financial signal to shareholders" and "Turning the shares into cash" that drive CCMG to implement its stock dividend policy damage the shareholders’ equities.